Revolution Bars Group PLC (LON:RBG) is to take a walk on the wild side as it plans to join AIM to benefit from quicker and cheaper fundraisings.
The city bar chain – which is currently listed on the London Stock Exchange's main market – expects to reopen venues in August, though this weeks press reported Westminster is drawing up a secret blueprint for pubs to serve drinks as early as this month.
The owner of the Revolution and Revolución de Cuba brands reckons August sales could be 55% of pre-pandemic levels, increasing to 80% by November as social distancing measures are relaxed.
Revolution also announced a share placing at a 42% discount, with plans to launch a second one, to raise a total of £15mln so it can improve its debt position.
The group reduced bank debt by £6mln to £11.5mln in the second half of 2019 but debt had ballooned to £22mln by May 26.
Investors did not raise a glass to Friday's news, with shares plunging 31% to 25p on the discounted fund-raising.
Talking about joining markets, there has been a lot of chatter in the market about Blencowe Resources PLC (LON:BRES), which relisted on AIM in April at 6p and peaked at around 9p earlier this week, before succumbing to a bout of profit-taking.
Following a £2mln fundraise and the reverse takeover of Consolidated African Resources, Blencowe now owns the Orom Graphite Project in northern Uganda, a development that has clearly resonated with investors.
Graphite is a core material used in batteries that power electric vehicles, laptops and phones and is an often-overlooked element in the energy storage revolution.
Looking at the wider market, the AIM All-Share index rose 2.7% to 901 this week, recovering to Februarys levels, while the FTSE 100 shot up 5.5% to 6,416, albeit still below pre-pandemic figures.
Among the risers, Cadence Minerals PLC (LON:KDNC) rocketed 97% higher to 11p after its partner Hastings signed a deal to supply ore from their Yangibana Rare Earth Project in Australia to German automotive supplier Schaeffler. Cadence also announced that its investee Macarthurs joint venture partner Fe completed the sale of a royalty interest, so it can now fund exploration at the Hillside copper and gold project, also located in Australia.
Fellow miner BlueRock Diamonds PLC (LON:BRD) added 28% to 58p after announcing that the restart of operations at the Kareevlei mine in South Africa had resulted in no new coronavirus cases, while production has averaged almost 2,000 tons per day since May 11.
Elsewhere, wireless communication technology provider CyanConnode Holdings PLC (LON:CYAN) charged 78% higher to 3p on a delayed £10mln contract that has now been approved. The setback had pushed quarterly revenues well below forecast levels.
In the petroleum industry, United Oil & Gas PLC (LON:UOG) gushed 33% higher to 2p after early analysis revealed a potentially much larger target at the Abu Sennan concession in Egypt, though it is too early to reach a conclusion on oil volumes.
Meanwhile, mobile gaming content developer Gaming Realms PLC (LON:GMR) surged 19% to 12p after announcing licensing revenue was up 80% over theRead More – Source
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